The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the equilibrium output is ________ of paper
A) 1,600 tons
B) 2,400 tons
C) 3,200 tons
D) 4,000 tons
C
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"The value of the next best alternative" defines
A. the Law of Increasing Costs. B. the economic problem. C. allocative efficiency. D. opportunity cost.
An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant
A) increase; increase B) reduce; reduce C) increase; reduce D) reduce; increase
If the nominal exchange rate between the U.S. dollar and the Thai baht (baht per dollar) is lower than the relative purchasing power between the two countries, which of the following would be true?
A) Purchasing power parity predicts that the value of the dollar will fall as traders take advantage of profit opportunities. B) Purchasing power parity predicts that the baht is undervalued as traders take advantage of profit opportunities. C) There are opportunities for profit by purchasing goods in the United States and selling them in Thailand. D) There are no opportunities for profit by purchasing goods in one country and selling them in the other.
Which of the following does not contribute to an institutional structure that promotes economic growth?
A. A pro-business environment. B. Well-defined property rights. C. Entrepreneurial incentives. D. Policy uncertainty.